REFORM OF HUMAN RESOURCES MANAGEMENT ESSENTIAL TO MODERNIZING UNITED NATIONS MOST IMPORTANT ASSET, SECRETARY-GENERAL TELLS FIFTH COMMITTEE
Press Release
GA/AB/3251
REFORM OF HUMAN RESOURCES MANAGEMENT ESSENTIAL TO MODERNIZING UNITED NATIONS MOST IMPORTANT ASSET, SECRETARY-GENERAL TELLS FIFTH COMMITTEE
19981028 Kofi Annan Says Organization Needs Right People with Right Skills, Committee Also Continues Discussing Scale of AssessmentsReform of human resources management was essential to modernizing the United Nations most important asset -- its staff -- Secretary-General Kofi Annan told the Fifth Committee (Administrative and Budgetary) this afternoon, as it began considering his report on the subject.
To address the United Nations global mission of peace, development and human rights, he said, "We want above all to have the right people with the right skills in the right job at the right time. We aim to do so by delegating authority, decentralizing decision-making and ensuring accountability at all levels".
The reform process was not an exercise in budget reduction and staff cutting, and was not a way to fund the Development Account, he stressed. It required partnership between Member States, staff, management and the Office of Human Resources Management, all of whom were stake holders.
He said reform of human resources management did not mean a direct application of management practices from the outside, which had much to teach but were not necessarily applicable to an international organization. The United Nations was over-administered, partly because of the Secretariat and partly due to Member States. To move faster, rules and procedures must be streamlined and that process had begun.
Uruguay's representative said that since such a large percentage of the United Nations budget went for human resources, Member States must require excellence in return. He encouraged the Secretary-General to open career prospects for staff based on merit and capacity. The United Nations could set examples in management and administration, just as it did in the areas of environment and human rights.
Statements were also made by the representatives of Austria (for the European Union), Indonesia (for the "Group of 77" developing countries and
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China), Japan, New Zealand (speaking also for Australia and Canada), Uganda, Cuba and Costa Rica.
Also this afternoon, the Fifth Committee continued discussing the scale of assessments, used to share out the United Nations expenses among its Members. It had before it a report from the Committee on Contributions and three requests from States for exemption to Article 19 sanctions, by which States lose their voting rights when their arrears equal or exceed the contributions due from them for the past two years.
During the discussion, many speakers reaffirmed the importance of the principle of "capacity to pay" as the fundamental criterion for apportioning expenses. The representative of the Russian Federation said the existing system did not allow for quick adjustments to reflect changes in the economic conditions of States. The shorter the statistical base period, the closer the resulting assessment rates were to real capacity to pay.
Attempts were being made to apply the special financial responsibility of Security Council permanent members for peacekeeping activities to activities in other areas, he continued. But the permanent members did not enjoy special rights in the Assembly and, therefore, any special responsibilities should be out of the question.
China's representative said her delegation was not opposed to discussions on the scale's elements, but proposals such as the "responsibility to pay" proposal ran counter to the "capacity to pay" principle.
The United Nations current difficulties were not caused by the scale but by States' failure to honour their Charter obligation to pay their contributions in full, on time and without conditions, the representative of the Philippines said, speaking for the Association of South-East Asian Nations (ASEAN). Such non-payment resulted in troop-contributing countries not being reimbursed in a timely manner and was affecting the Secretariat's capacity to implement mandated programmes.
The representative of Uganda said no one set of adjustments to the scale satisfied all Member States, but the present methodology was the least unsatisfactory proposed so far. The practical implications of recalculating the scale annually would cause concern, particularly if it led to a full renegotiation each year.
Speaking for the Group of 77 and China, the representative of Indonesia said that the scale, once fixed by the Assembly, should not be subject to a general revision for at least three years until there had been substantial changes in relative capacity to pay.
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The representatives of Croatia, Marshall Islands, Kazakhstan, India and Kuwait also spoke.
The Fifth Committee will meet again at 10 a.m. tomorrow, 29 October, to continue discussing the scale of assessments. It will also take up reports related to the Development Account, and begin reviewing implementation of Assembly resolution 48/218B, which established the Office of Internal Oversight Services.
Fifth Committee Work Programme
The Fifth Committee met this afternoon to hear an address on human resources management reform by Secretary-General Kofi Annan.
The Committee was also expected to continue consideration of the United Nations scale of assessments, including the report of the Committee on Contributions. (For background on the Committee's discussion of scale of assessments, see Press Releases GA/AB/3244 of 14 October; GA/AB/3246 of 16 October; and GA/AB/3249 of 23 October. For background on the report of the Committee on Contributions, see Press Release GA/AB/3250 of 26 October.)
The Committee also had before it the report of the Secretary-General on human resources management reform (document A/53/414), prepared in response to the General Assembly's request that he report on the implementation of his report "Reviewing the United Nations: a programme for reform". At the heart of the reform process is the need to align the Organizations's human resources capacity with its global mission. The report draws on recommendations from the Task Force on Human Resources Management.
Under the heading "Vision of Organizational Change", the report states that creating a new organizational culture will require a paradigm shift to embrace empowerment and accountability. Significant investment in people will be required, as will the active participation of staff, management and the Office of Human Resources Management. The vertical chain of dialogue and reviews must be strengthened, for which the performance appraisal system will play an essential role. The prime responsibility for action to remedy failures in performance will lie with supervisors and managers at all levels. Additionally, the Department of Management is considering establishing transparent accountability mechanisms and will define the policy framework for exercising responsibilities of management and staff.
Following are the key elements of the human resources strategy that, according to the report, forms part of the programme of change: competitive and progressive conditions of service; clearly defined organizational values and competencies; streamlined human resources policies and staff administration; development of procedures for monitoring compliance and accountability of human resources strategies; refocusing the role of the Office of Human Resources Management towards strategies, policies, guidance and monitoring; an improved system of recruitment and placement; continuous learning; mobility allowing global resource management; fostering mutual trust between management and staff; and integrated human resources planning.
The new management culture will empower managers to administer the full range of resources at their disposal, according to the report. In turn, managers will be responsible both for results and for efficient use of resources. Programme and in-line managers will have increased responsibility
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for human resources management, with expert support from within their departments. Staff will be encouraged to be innovative and to seek new challenges in their daily work. As the Office of Human Resources Management assumes its more focused role, new partnerships between it, department heads and line managers will be needed.
In the area of planning, the Secretary-General reports that work has begun on making human resources management a part of an integrated management system. Actions taken include the commencement of the compilation of a computerized skills inventory of staff and development of a list of qualitative and quantitative human resources indicators designed to monitor evolution of the workforce. The objective is to establish a time-line of trends in human resources. Particular emphasis has been given to human resource mandates set by the General Assembly.
Four phases of projects have been identified for future completion, the report stated. Phase one focuses on the preparation of human resources data and has commenced, as has phase two, which aims to develop human resources planning, forecasting and modelling capacity. The third phase deals with testing and reviewing of planning models, and implies, among other things, the establishment of a blueprint for replacement of staff due to retire. The fourth phase will implement human resources planning models across the Organization.
Regarding recruitment and placement, the report notes that until a new system is in place and staff are trained to implement it, the Secretariat continues to modify existing procedures, notably by removing unnecessary procedures to reduce recruitment times and reduce vacancy rates. The priority in this area is to design a system that places the principal responsibility for selection of staff in programme managers' hands, with appropriate accountability measures. In the future, the competitive entry processes for junior Professional-level staff will need to be reviewed, as will techniques of rostering candidates, executive staff and recruitment missions. To broaden the talent and skills pools, the Organization must be more receptive to receiving and outposting staff within the common system.
On staff administration, the report says that an extensive set of streamlining projects have been completed in the first half of 1998. Four procedures on dependency benefits, education grant, rent subsidy and special post allowance have been streamlined and automated. It is anticipated that responsibility for them will be delegated to line managers. Desk procedures have been developed to guide administrative personnel, and training in the Integrated Management Information System (IMIS) has been provided. It is anticipated that line managers will receive delegation to implement human resources policies, following briefings and the establishment of guidelines. Administration of justice requires priority attention, including the
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rationalization of bodies dealing with staff grievances and establishing new processes requiring managers to defend their decisions.
On staff development, performance management and career support, the report states that the Performance Appraisal System (PAS) has been revised, and a process has been initiated to identify core organizational competencies. Increased funds for training were made available this biennium, although sustained investment is needed. Currently the United Nations only spends 0.75 per cent of staff costs on training. Staff training and development have been refocused with priority given to key areas. A People Management Programme has now been attended by more than 95 per cent of staff at the Director level (D-1 and D-2) and a majority of P-4s and P-5s with managerial responsibility. An intensive programme for new Professional staff was introduced in 1997. Priority is being given to increasing mobility of staff. A more systematic approach to mission assignments is being implemented.
A series of guides is being developed on aspects of staff development and a Career Support programme has been launched. A system of managed staff reassignments for new entry-level Professional staff is planned, and the linking of grades is under review. Attention must be given to developing appropriate responses to exemplary staff and to underperformance.
Regarding conditions of service, the report states that a step-by-step approach is being taken towards introducing performance awards or bonuses and to address the issue of underperformance. Alternative work schedules are being developed and will be piloted. Work is under way to simplify remuneration packages for 300 Series staff, and a dual track system of career and non-career appointments will be reviewed. The aim for the next three years will be to fully implement the Noblemaire principle -- which provides that Professional salaries and other conditions should be based on the best paid civil service -- and to ensure the continuous and proper implementation of the Flemming principle -- according to which, General Service conditions are to be based on the best prevailing local conditions. The proposed review of the International Civil Service Commission (ICSC) will contribute to the success of the reform process.
The report concludes by noting that continuous communication will be necessary to ensure a common purpose and commitment to change.
Human Resources Management Reform
KOFI ANNAN, United Nations Secretary-General, said he was pleased to share his thoughts on the Secretariat's progress in changing human resources management. A number of documents touched on aspects of the reform process, which together were an integral part of the "quiet revolution" of United Nations reform and renewal.
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Despite all the work that had been done, the United Nations was still too slow and ponderous in responding to the many challenges that the Member States sought to address through it, he said. Reform of human resources management aimed to strike a blow for excellence, efficiency and effectiveness. His report carried forward the vision he had presented to Member States last year in his overall programme of reform. It built on the strategy for human resources management adopted by the Assembly in 1994. It drew extensively on the recommendations of the Task Force on Human Resources Management and reflected consultations with staff and management of the Secretariat, which would continue.
The report set out a vision of organizational change, combining longer- term objectives with short- and medium-term targets for the next three to five years, he said. Reform in general was a process, requiring careful study of options before moving ahead, and a review of feedback to learn from experience.
He said a great number of changes in key areas had been put in place, including staff administration, recruitment and placement and career development. At the same time, much remained to be done.
"We want above all to have the right people with the right skills in the right job at the right time. We aim to do so by delegating authority, by decentralizing decision-making and by ensuring accountability at all levels," he said.
Accountability was the guiding principles of that effort, he said. That required strengthening the vertical chain of dialogue, up and down the line of management. New mechanisms were being considered, such as a management review panel. Delegation would be done on an incremental basis, taking place gradually, as guidelines, monitoring and accountability mechanisms were put in place and as managers were ready to take on their added responsibilities.
The Secretariat sought to simplify rules and procedures, he said. That process was already under way in administration of entitlements and elsewhere. The role of the Office of Human Resources Management would become more focused to be responsible for setting strategy, developing policy, providing guidelines to managers and monitoring performance. However, certain core services would remain with that Office, he said.
The Secretariat also sought to promote a culture of continuous learning and staff development leading to career growth, he said. Compared to other United Nations funds and programmes and to private sector enterprises, the United Nations did not invest enough in staff development. Mobility was to be encouraged at all levels, across functions, departments, duty stations and organizations of the United Nations system, to broaden the experience of staff. All this was to be done while upholding fundamental principles of
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transparency, due process, fairness and respect for diversity, while meeting the requirements for geographical and gender balance, he added.
Reform of human resources management did not mean a direct application of management practices from the outside, he said. Those practices did have much to teach, and contacts had been established with business leaders and management counsellors. Still, he was aware that what was "tried and true" on the outside was not necessarily applicable to international organizations.
The reform of human resources management was not an exercise in budget reduction and staff cutting, and was not a way to fund the Development Account, he said. Rather, it was an investment in change, an essential process to modernize the most important asset.
Reform of human resources management represented partnership, he said. All were aware of the division of responsibilities between Member States and the Secretariat. He would continue to rely on the support of the Committee and seek its approval when appropriate. Member States, staff, management and the Office of Human Resources Management were all stake holders. Without a shared commitment to change and improvement, reform would fall short of its goal.
The overarching goal was to align the Organization's human resources management with its global mission, he said. That mission -- peace, development and human rights around the world -- was growing ever more urgent and more complex. The world needed a better United Nations. A great deal had been accomplished, both structurally and organizationally. Also, much had been done in setting priorities and coordinating mandates, and in involving civil society and broadening the definition of the international community. But those were only pieces of the puzzle. The puzzle would not be complete until human resources were managed better. He looked forward to hearing Member States ideas and suggestions about meeting common goals, and moving ahead in a spirit of partnership.
ERNST SUCHARIPA (Austria), speaking on behalf of the European Union, said that he welcomed the efforts of the Secretary-General to bring to the Organization modern human resources management standards. The European Union was following the matter with great interest and sympathy. The presence of the Secretary-General today testified to the importance he attached to the task. As staff members were the greatest assets of the Organization for accomplishing its work, it needed the best and brightest women and men. The European Union supported efforts to improve that central resource.
A key element, the duration of the recruitment procedure, needed to be addressed, he said. Recruitment took too long and needed to be speeded up. The European Union was happy about the emerging change in the climate of dialogue between management and staff. Best performance would only be
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delivered if there was sufficient motivation. The best way to achieve that was meaningful dialogue. The Union was impressed by the ideas found in the report, but implementation would be crucial and it would stay actively engaged in the process.
SAODAH B.A. SYAHRUDDIN (Indonesia), speaking on behalf of the "Group of 77" developing countries and China, thanked the Secretary-General for the progress he had made on human resources reform. The Group fully understood the slowness of the process, caused by constraints placed on the Secretariat. It was glad reform was happening in a transparent manner, and welcomed continued dialogue. The Group was looking forward to transparent accountability mechanisms and a successful result of the dialogue.
YUKIO TAKASU (Japan) said that reform of the Secretariat, which was a major organ of the United Nations, was one of the major elements of United Nations reform. A more focused and effective United Nations needed changes, starting with recruitment, promotion, mobility and human resources management in general. Currently, it took 461 days to recruit United Nations staff. That number was not impressive, was totally indefensible and it discouraged good applicants. Japan supported the Secretary-General's vision to empower managers while simplifying rules and procedures. It was always impressed by dynamic leadership of the Secretary-General and the Under-Secretary-General for Human Resources Management, and by the new vim and vigour they brought to the process.
Japan agreed with the principles proposed, but had one question, he said. How would empowering programme managers through delegation not just speed up the process of recruitment, but also meet the aspirations of Member States to ensure a Secretariat staffed by the best people with due regard to geographical balance? The number of Japanese nationals in the Secretariat had not reached one half of the lowest point of the desired range. He could understand that the new process would allow gender balance to be improved, but what, in small offices for example, would be done to improve geographical balance? If each manager was only responsible for a limited number of posts, how would geographical representation be balanced. A strong focal point was needed to promote such a system-wide goal. Japan would welcome the Secretary- General's proposals to improve under-representation.
JORGE PEREZ-OTERMIN (Uruguay) said he believed that the plans presented were in the right direction regarding Member States' expectations. Uruguay also believed they were very important as markers of the beginning of a new management and administration culture which would be of value to the most valuable United Nations asset -- its staff. Coordination and modification of working systems would not only lighten the financial burden on Member States, but would also improve the image of the Organization.
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A large percent of the United Nations budget was for human resources, and so Member States must require excellence in return, he said. Uruguay wished to encourage the Secretary-General in his plans to open serious career prospects for staff with the possibility of career progress and based on merit and capacity. A rational salary that would attract the best would be important. The United Nations could set good examples in management and administration, just as it set examples in the areas of environment and human rights.
MICHAEL POWLES (New Zealand), speaking on behalf of Canada, Australia and New Zealand, said that human resources management reform was a crucial aspect of United Nations reform, which was supported by the countries for which he spoke. The main objective of reform was to better serve the aims and ideals of the international community into the twenty-first century.
The SECRETARY-GENERAL thanked Member States for their constructive comments, although he understood that they were preliminary and that more substantive comments would follow at a later date. Human resources management reform, geared to making the Organization more effective, efficient and expeditious in its responses, was a major task. The United Nations was over- administered. That situation was partly created by the Secretariat and was partly imposed by Member States.
There was a need to streamline rules and procedures so that things could move faster, and that process had begun, he continued. Obviously, delegation of authority did not mean abdication of responsibility. It was subject to the central policies Member States had imposed on the Secretariat on geographical and gender balance. In addition, the Secretariat -- because it was an ageing Secretariat -- needed to be rejuvenated, and it should recruit bright young people who could make careers within the Organization.
He said certain core functions would remain with the Office of Human Resources Management, such as the responsibility for geographical and gender balance and efforts to bring in younger talent. It would establish guidelines for departments and monitor their performance. He remained sensitive to the need for geographical balance. Delegation did not mean that responsibility would be dropped, he added.
NESTER ODAGA-JALOMAYO (Uganda) said he had wanted to pose a question to the Secretary-General, but time had not permitted. In the future, the Secretary-General should hear questions relevant to the functioning of the Committee, rather than statements. He asked that the Secretary-General's statement be made available to the Committee's members.
MOVSES ABELIAN (Armenia), Committee Chairman, said the statement would be available later.
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NORMA GOICOCHEA ESTENOZ (Cuba) said her delegation had asked for the floor while the Secretary-General was in the room to ask questions on the document. The necessary steps should be taken so that delegations could ask questions while he was there.
The Chairman noted those points.
NAZARETH INCERA (Costa Rica) said this was not the first time the Secretary-General had addressed the Committee and there had not been adequate time for him to hear delegations' concerns. It was important that he allow sufficient time for that, particularly when such an important document was introduced.
The CHAIRMAN said he would communicate those concerns to the Secretary- General's office.
Scale of Assessments
Ms. SYAHRUDDIN (Indonesia), speaking for the Group of 77 and China, emphasized the need for Member States to provide adequate resources for full implementation of mandated programmes and activities. She reaffirmed the legal obligation of Member States to bear the expenses of the Organization as apportioned by the General Assembly. Also, she reaffirmed that the principle of capacity to pay was the fundamental criterion for the apportionment of such expenses. As stressed by the Ministers of Foreign Affairs of the Group of 77 and China during their twenty-second annual meeting in September, developing countries should not be assessed at a rate higher than their capacity to pay due to any adjustments to the scale.
Revisions to the scale methodology would not solve the Organization's critical financial situation or the level of resources available, she said. The United Nations financial difficulties could only be resolved if Member States -- the major contributor in particular -- paid their assessments in full, on time and without conditions.
The Group emphasized the need to consider sympathetically the request of those Member States -- in particular developing countries -- that were temporarily experiencing genuine economic difficulties, she said. The Committee on Contributions should continue examining ways in which requests of those States for exemption could be considered in a timely manner. Further, the Assembly should be able to benefit whenever possible from that body's technical advice when considering requests. It was important for the Assembly to agree on a clear set of rules on granting waiver of Article 19, by which States lose voting rights when their arrears equal or exceed two years' dues. That set of rules should not discriminate against any State.
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On the review of the various elements of the scale methodology, she recalled painful negotiations that had led to the adoption by consensus of General Assembly resolution 52/215 on the scale of assessments for the period 1998-2000. She reaffirmed that the scale of assessments, once fixed by the Assembly, should not be subject to a general revision for at least three years until there had been substantial changes in relative capacity to pay. The Committee was not considering the agenda item related to peacekeeping budgets, but rather the regular budget. Its deliberations should remain focused on the issue of the scale of assessments for the regular budget.
FELIPE MABILANGAN (Philippines), speaking for the Association of South- East Asian Nations (ASEAN), reaffirmed that the expenses of the Organization should be borne by Member States as apportioned by the Assembly in accordance with the principle of capacity to pay. Any unilateral action by a Member State to determine its own share of the United Nations expenses was unacceptable. The United Nations difficult economic situation was adversely affecting the Secretariat's capacity to implement fully and effectively its mandated programmes. Those difficulties were not caused by the scale but by States' failure to honour their Charter obligation to pay in full, on time and without conditions. Member States, including those from developing countries, that provided troops and equipment to various peacekeeping operations were not being reimbursed in a timely manner. The situation needed to be redressed as a matter of urgency.
Proposals to encourage Member States to honour their Charter obligations in full and without conditions should be considered further, he said. The Committee on Contributions intended to continue considering various proposals related to Article 19 and ASEAN would await the result of that review. There should be clear procedures for Member States to channel their requests for exemptions to Article 19 to the Committee on Contributions. The Assembly should be able to benefit from the technical advice of that body when considering those requests.
At the same time, the Contributions Committee should recommend practical ways in which it could consider, in a timely manner, those requests for exemptions which were received after its regular annual session, he continued. On the question of the scale of assessments for peacekeeping expenses, he said that this should be considered under the relevant agenda item, and not under the current one, which dealt specifically with the scale for the regular budget.
JASMINKA DINIC (Croatia) said that a basic obligation of all Member States should be to pay their contributions to the United Nations budget. A number of governments had to make great efforts to meet those financial obligations. Her Government, coping with problems of reconstruction of its infrastructure and economy, had managed to make a payment last July of
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$1,499,985 to cover its arrears for the regular budget and partially for peacekeeping operations.
The scale approved last year was not perfect, but it showed improvement in reflecting States' capacity to pay, she said. A comprehensive debate on the scale would take place in the fifty-fourth session of the General Assembly, when more detailed information would be available on the impact of the scale, from both the Contributions Committee and the Member States.
She said her delegation supported implementation of Article 19, since that was the only sanction against those Member States who were not meeting their obligations. However, the strengthening of the procedure should be further elaborated in the Contributions Committee, taking into consideration the impact on the current scale. In the meantime, the existing procedure should be respected to ensure equal treatment to all Member States.
In respect of recent requests for exemption from Article 19 sanctions, the Fifth Committee faced difficulties resulting from a lack of consistency, she said. She supported the request of Bosnia and Herzegovina, aware of the difficulties that country was facing. The Committee had then been approached with similar requests from the Republic of the Congo and from Iraq. Giving equal treatment to all Member States meant that each request should be considered individually.
A mechanism should be established to deal in an orderly manner with similar applications that might arise outside the regular procedure, she said. The Committee on Contributions, as an expert body, should advise the Fifth Committee on the issue. However, that potential future solution did not free the Committee from its obligations to deal with the issue of the applications of the above-mentioned States as a matter of priority. Her delegation hoped that with the assistance of experts from the Committee on Contributions, the Fifth Committee would arrive at a consensus decision.
JACKEO RELANG (Marshall Islands) said the process of reforming the United Nations required Member States to recommit themselves to their treaty obligations, to negotiate in good faith and to decide on mutually beneficial steps. His delegation was pleased to hear that a particular major contributor was to pay some arrears shortly, but emphasized that all assessed contributions must be paid in full and on time. The rules of the General Assembly only allowed exemptions in the most extreme cases. If Member States chose not to pay in full, a tragic signal was being sent. Not only was the trust placed in the United Nations being disrespected, but also the principle of capacity to pay was being disrespected and disregarded.
The difficult situation of many countries, in particular the Small Island Developing States and least developed countries, had finally been taken into account, he said. While the scale was not perfect -- it never would be - - similar steps must now be taken in other United Nations organs and agencies to mirror that reality. The capacity to pay was the paramount yardstick for assessed contributions. There was need to indicate to those various agencies that they must properly reflect the Assembly's unanimous decision regarding the relative capacity of the Members to pay their contributions. All United Nations agencies and conventions must now adopt the new scale, so that the Assembly's important decision could be given due reflection.
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AKMARAL ARYSTANBEKOVA (Kazakhstan) said it was obvious that there was need for a more timely discharge by Member States of their financial obligations to the United Nations. Her country was taking all necessary measures to pay its assessed contributions and its arrears. Despite difficulties it was experiencing related to overcoming the socio-economic and environmental consequences of natural and technological disasters, Kazakhstan was reducing its debt and striving to contribute to financing the work of the United Nations. It had paid a sum of $1.7 million to the regular and peacekeeping budgets, thus fully paying its regular budget arrears for 1997. Since becoming a Member in 1992, her Government had paid more than $17 million. It planned to discharge in full its arrears for previous years by the end of the year 2000.
Her delegation was in favour of maintaining the principle of capacity to pay, taking into account the real economic situation of Member States as the basic criterion for establishing the size of their contribution to the budget, she said. She expressed satisfaction that the scale methodology was increasingly in line with the real capacity to pay of her country and the majority of those with economies in transition.
Turning to elements of the scale, she said the base period should be reduced to three years to better reflect the real capacity to pay of Member States, while the scheme of limits should be phased out during the period for which the current scale was in force, before the year 2001. Regarding the conversion rates, she welcomed the Committee on Contributions' conclusion on using market exchange rates for the next scale, as this would reflect more accurately States' capacity to pay. She advocated retention of the low per capita income adjustment.
SERGEI MAREEV (Russian Federation) said assessment rates should be as fair and close as possible to Member States' capacity to pay. The existing system of setting assessment rates did not allow for quick adjustments to reflect changes in the economic conditions of States. Exemptions to Article 19 recommended by the Committee on Contributions should be of limited duration, and any such request should be reviewed on a case-by-case basis. His delegation supported the decision of the Committee on Contributions to continue discussion of the matter at its next session.
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On the principle of the methodology to determine the scale of assessments, he said that the concept of relative capacity to pay had proven its viability over 50 years. It was deviation from that principle that caused problems. In recent years, the Assembly had managed to rid itself of a number of elements, "artificial add-ons", which had been prompted by political and transitory considerations. A good foundation had thus been laid for further improving the scale's methodology.
He reaffirmed his delegation's view that the shorter the statistical base period, the closer the resulting assessment rates were to real capacity to pay. National income data conversion rates were complex, and he hoped the Contributions Committee would consider expert advice from the International Monetary Fund (IMF) and the World Bank and make recommendations to the Assembly.
The recent changes in the world economic situation had introduced a new dimension to the issue of external debt: adjustment of assessment rates, especially since there was no consensus on whether the borrowed resources should be considered as an increase of national property or not, he said. The Secretariat's Statistics Division should provide the Contributions Committee with all expertise available on the matter.
The ceiling had nothing to do with the concept of capacity to pay, he said. Therefore, it was not within the purview of the Contributions Committee and should be considered directly by the General Assembly. The proposed annual recalculation of assessment rates would serve towards stricter application of the principle of capacity to pay and the prompter setting of new rates, although it would increase the Secretariat's workload.
Turning then to the concept of responsibility to pay, he said it seemed that was being interpreted in a peculiar way. Attempts were being made to apply the special financial responsibility of the Security Council permanent members for peacekeeping activities to United Nations activities in other areas. Various ideas had been put forward, including setting a regular budget floor rate for those States. But the permanent members did not enjoy special rights in the Assembly and therefore any special responsibilities should be out of the question.
He said such ideas had nothing to do with the principle of capacity to pay and were outside the mandate of the Committee on Contributions. While the issue of peacekeeping financing was not directly covered by the agenda item, the apportionment procedure adopted more than 25 years ago needed radical revision.
NIU HONGBO (China) said that the scale of assessments for 1998-2000, as approved by the General Assembly, had been the result of full participation, serious analysis and difficult consultation by the entire membership. It had
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been no easy achievement, and China believed no general revision was needed for at least three years, unless there were substantial changes in capacity to pay. That was in keeping with rule 160 of the General Assembly Rules of Procedure.
The principle of capacity to pay was fundamental for assessing expenditures and should continue to be followed, she said. China was not opposed to discussions on the factors and elements that constituted the scale, at appropriate times, to ensure it met the principle of capacity to pay. It was, however, opposed to proposals such as the "responsibility to pay" proposal, which ran counter to the principle while waving it as a banner. In that context, China supported the Committee on Contributions' views in paragraphs 88 and 89 of its report.
On Article 19, China believed, and had repeatedly stated, that while it sympathized with States in economic difficulties caused by circumstances beyond their control, it emphasized the role and importance of the Committee on Contributions and the Rules of Procedure. Matters of that nature should be referred to the experts of the Committee on Contributions for consideration.
She said China had joined the original consensus in the spirit of flexibility to facilitate agreement. Since then, several other requests had been received which should be treated equally by the General Assembly. The Committee on Contributions should consider the procedural aspects of the consideration of requests for Article 19 exemptions as a priority, and she hoped a solution would be worked out at an early date.
China was gravely concerned about the current financial situation of the Organization, which was, in essence, a crisis of non-payment of substantial arrears by a small number of States including the largest contributor, she said. She appealed to Member States to pay in full, on time and without conditions to prevent further deterioration of the situation. Regarding peacekeeping, discussion of its scale of assessments belonged in its specific forum and should not be discussed under this item.
RAJAT SAHA (India) said that given that the scale of assessment represented a delicate political balance, India believed that, in the process of refining the methodology, a consensual approach should be adopted. Regarding specific comments in the report of the Contributions Committee, his delegation concurred with the recommendation that Comoros and Tajikistan be permitted to vote through the fifty-third session, as they had failed to pay their dues for reasons beyond their control. India was pleased that the General Assembly had decided to endorse the Contributions Committee's view, as well as a waiver for three months for Guinea-Bissau and Georgia, taking into account their genuine economic difficulties.
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India appreciated that there were different governmental practices in various countries through which any demand for appropriation was passed, but it was imperative that Member States abide by their Charter obligation to pay in full, on time and without conditions, he said. The Organization's current unsatisfactory financial situation hampered its ability to fulfil important mandates. Long delays in reimbursement to United Nations peacekeepers were now being expected, and financially imprudent borrowing from the peacekeeping accounts to finance regular budget functions continued unabated. In that sense, the procedure for application of Article 19 needed to be thoroughly reviewed.
He welcomed the general consensus on the importance of reflecting the principle of "capacity to pay", but there was no precise definition of that, he said. India concurred with the Contributions Committee that reintroduction of a per capita assessment ceiling would be contrary to that principle. It was inappropriate to introduce new concepts which had serious methodological and data deficiencies. Turning to peacekeeping assessments, he recalled that historically, there had been a differentiation between the regular budget and peacekeeping scales in recognition of the fact that peacekeeping involved a heavy burden on the developing countries. Its costs needed to be apportioned with that in mind. India supported repeated calls by the Group of 77 and China for an institutionalization of the current ad hoc system of peacekeeping scales.
ZIYAD MONAYAIR (Kuwait) said the focus of the Committee on Contributions' discussion was, basically, what had been requested by the General Assembly in resolution 52/115 -- to develop and elaborate a methodology to make the scale more practical and transparent for the next application. Kuwait had noticed the interest of the Committee on Contributions in the development of the current methodology, particularly the analysis of the use of gross national product (GNP) or gross domestic product (GDP). The Committee on Contributions should continue to study that and other elements of the methodology.
Regarding Article 19, the Committee on Contributions was the primary reference for any exemption, he said. It was important that such requests were studied on a case-by-case basis and that recommendations were made to the General Assembly regarding that delicate problem. Procedural rules were, at times, necessary to deal with cases of countries in difficulties which could not await the deliberations of the Contributions Committee. Kuwait had sympathy for those countries, as often the circumstances were beyond their control. It hope the Committee on Contributions would continue to develop its work on exemptions and would benefit from the experience of the Fifth Committee in its discussion of the problem.
Mr. ODAGA-JALOMAYO (Uganda) noted that this year the Committee on Contributions had undertaken a review of the application of Article 19.
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Uganda endorsed the Committee on Contributions' view that the specific circumstances of each Member State had to be considered, and that, in that connection, the fullest possible information to facilitate consideration, including economic aggregates, government revenues, foreign exchange resources, indebtedness and difficulties in meeting international and domestic financial obligations should be provided. He cautioned against seeking a waiver without adequate supporting information.
In that regard, Uganda wished to emphasize that any review of the application of Article 19 must strengthen its application, and that of Rule 160 of the General Assembly Rules of Procedure, he said. Based on past experience, Uganda supported the proposals for the establishment of clear guidelines and criteria for consideration of requests, and looked forward to further consideration by the Committee on Contributions at its fifty-ninth session, including consideration of practical applications of its current proposals.
Regarding the elements of the scale methodology, he noted that the Committee on Contributions intended to consider them at its fifty-ninth session to make a consolidated set of recommendations for the next scale to the fifty-fourth General Assembly session. Since its inception, the scale had been subjected to various adjustments to maximize its reflection of capacity to pay. No one set satisfied all Member States, and that was the primary reason for protracted debates and negotiations. He acknowledged that the present methodology called for some improvement. However, it was the least unsatisfactory proposed so far. Any future discussion should build on the broad consensus that had resulted in the adoption of successful scales thus far.
Uganda was particularly concerned about the practical implications of the proposal that the scale be recalculated annually, in light of rule 160 of the General Assembly Rules of Procedure that the scale once fixed should not be subject to review during the scale period. The Committee on Contributions had highlighted a number of issues regarding that proposal. Uganda would be concerned if the proposal led to a full renegotiation each year, and urged the Fifth Committee to "master the necessary courage" and provide the Committee on Contributions with an explicit response to issues raised in paragraphs 75 to 78 of its report.
He said Uganda supported the Committee on Contributions' remarks concerning the reintroduction of a ceiling on per capita assessment set at the level of the per capita assessment of the highest contributor. That would be contrary to the principle of capacity to pay.
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